Hershey cocoa spat tests limits of investor ethics 4 Dec 2020 Ghana and Ivory Coast may stop selling sustainable beans to the Reese’s maker, accusing it of dodging payments for impoverished farmers. That could make it harder for the $31 bln group to flaunt its sustainability kudos. The snag is that so far shareholders don’t seem to care.
Virus gives Africa a good debt default excuse 23 Mar 2020 The continent faces Covid-19 largely on its own as other countries strain to help their own citizens. A young population helps; weak health systems and stretched public finance don’t. Cash-strapped countries like Zambia and Ghana may stop paying what they owe bondholders.
West African monetary union expansion is high risk 3 Jan 2020 The region is rebranding its CFA franc as the eco and watering down French influence in how the currency is managed. True, Paris will still guarantee a peg with the euro. But a potential new member, Ghana, is already militating for the link to be ditched. That would be a mistake.
Africa’s sweet cocoa cartel misses bigger prize 14 Jun 2019 Ivory Coast and Ghana have set a minimum selling price for the chocolate ingredient to try to help farmers. The pair control two-thirds of global supply, way more than OPEC does for oil. The real riches in cocoa, though, lie in processing the beans, not just growing them.
African miners get mix of red carpet and red card 8 Feb 2019 The continent can’t work out whether to shake hands with the sector, or shake its fist. Warm welcomes from Ghana, South Africa and Ethiopia contrast with the aggressive resource nationalism of Tanzania. A nasty slowdown there would bolster the open-door approach.
Franc gives West Africa good reason to like France 4 Feb 2019 Italy’s 5-Star says Paris is fuelling unemployment and migration by backing the region’s single currency. It’s true the 74-year-old franc keeps the zone’s 150 mln people oddly close to their old master. But its longevity proves the merits of stable prices over cheaper exports.
Zambia debt dispute undermines African credit 17 Apr 2018 The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.
Ethiopia’s bond plan will test hunt for yield 28 Nov 2014 The Horn of Africa nation plans to issue a debut dollar bond, of reportedly $1 bln. The demand for such frontier market debt, which is at the risky and illiquid end of the sovereign bond spectrum, will show just how adventurous investors have grown in their quest for returns.
Old-style IMF sado-austerity suits Ghana 4 Aug 2014 The African nation responded to oil wealth with a massive increase in public sector wages and headcount. Now the cedi is collapsing while the economy remains overheated. Traditional tough IMF medicine, not the sweeter post-2008 syrup, is needed to bring back stability.
Ghana spoils good thing with poor policies 7 Feb 2014 When oil arrived, Ghana’s socialist government ramped up spending and subsidies and ran big budget deficits. Now growth has stalled and the government is installing FX controls. It needs to move in exactly the opposite direction, toward an affordable and more modest state.
Even African laggards can hope to kickstart growth 28 May 2013 The war-torn DRC still needs World Bank help. But Ghana is tapping capital markets again, and nearby countries are close behind. One, Rwanda, shows how in favorable conditions even brief stability can open the door to financial investment. The DRC and others should pay heed.
Growth gem Ghana needs to husband its resources 26 Jul 2012 Sitting President John Atta Mills died this week, five months before the next election. Ghana’s economy is among the fastest-growing anywhere, helped by new oil output. But there’s a risk the bonanza is wasted. Mills’ successor needs discipline to achieve long-term prosperity.